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deknowlton
Jun 16, 2008, 02:26 AM
If I take an early 401k withdrawal and have no reported income for the same year the withdrawal is taken, am I still penalized?

Thanks!

MukatA
Jun 16, 2008, 04:44 AM
Yes, you pay 10% early withdrawal penalty.
The withdrawal will be taxed as ordinary income. It is always good idea to withdraw (if you must) when you have no income or little income.